Correlation Between Mindteck and ICICI Bank
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By analyzing existing cross correlation between Mindteck Limited and ICICI Bank Limited, you can compare the effects of market volatilities on Mindteck and ICICI Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mindteck with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mindteck and ICICI Bank.
Diversification Opportunities for Mindteck and ICICI Bank
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mindteck and ICICI is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mindteck Limited and ICICI Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Bank Limited and Mindteck is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mindteck Limited are associated (or correlated) with ICICI Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Bank Limited has no effect on the direction of Mindteck i.e., Mindteck and ICICI Bank go up and down completely randomly.
Pair Corralation between Mindteck and ICICI Bank
Assuming the 90 days trading horizon Mindteck Limited is expected to generate 5.73 times more return on investment than ICICI Bank. However, Mindteck is 5.73 times more volatile than ICICI Bank Limited. It trades about 0.21 of its potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.44 per unit of risk. If you would invest 23,955 in Mindteck Limited on September 18, 2024 and sell it today you would earn a total of 4,940 from holding Mindteck Limited or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mindteck Limited vs. ICICI Bank Limited
Performance |
| Timeline |
| Mindteck Limited |
| ICICI Bank Limited |
Mindteck and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mindteck and ICICI Bank
The main advantage of trading using opposite Mindteck and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mindteck position performs unexpectedly, ICICI Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ICICI Bank will offset losses from the drop in ICICI Bank's long position.| Mindteck vs. ICICI Bank Limited | Mindteck vs. Bank of Maharashtra | Mindteck vs. City Union Bank | Mindteck vs. UCO Bank |
| ICICI Bank vs. Pritish Nandy Communications | ICICI Bank vs. NRB Industrial Bearings | ICICI Bank vs. Hi Tech Pipes Limited | ICICI Bank vs. Ankit Metal Power |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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